Fuel Prices Highest Since October

February 25th, 2013

Motor fuel prices have marked four consecutive weeks of increases, reaching their highest prices so far this year, with petrol hitting 1.5 euros per litre and diesel at 1.4 euros for the first time since October last year, according to data collected from the European Union Oil Bulletin.

Specifically, a litre of petrol reached an average price of 1.484 euros at the pump, up 1.5% from the previous week and 6% higher than the beginning of this year. This was also 4.8% more than in the same week of last year, when it marked a then-record high of 1.415 euros.

Meanwhile, the average price of a litre of diesel has exceeded, for the first time in five months, the threshold of 1.4 euros, to stand at 1.41 euros, which is 1.5% more than the previous week and 3.5% more than in January. The price of diesel is 3% more than in February last year, when it also registered record prices.

The first two months of the year have seen a continued rise in fuel prices, with only a week’s respite in mid-January, and a widening gap between the prices of petrol and diesel, which in early January was just 3 cents a litre, and which now differs by 7 cents.

At current prices, filling an average 55 litre tank with petrol would cost 81.6 euros, which is 1.3 euros more than a week ago and 4.6 euros more than in January, while for diesel the cost rises to 77.5 euros, 2.6 euros more than in January. However, declines in energy prices have been registered in the last week, so lower prices for fuels are anticipated in the coming days.

Diario Sur reported that the current developments in these prices comes after the end, on 1st January, of the tax exemptions previously applied to bio-fuels, pushing a litre of fuel up by up to 3 cents.

Still cheaper than in the EU

Fuels in Spain still cost less than the EU average, where a litre of petrol rises to 1.619 euros, and 1.662 euros for the eurozone. Meanwhile, the price per litre of diesel amounts to 1.492 euros on average in the EU-27, and 1.482 euros in the eurozone.

The lower level of prices in Spain with regard to neighboring countries is due to the fact that the country, despite the increases in VAT, higher regional taxes and new tax burdens on bio-fuels, still has less fiscal pressure.

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